COMMUNICATION ON PROGRESS REPORT

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1 COMMUNICATION ON PROGRESS REPORT 2009

2 Introduction As a member of the Global Compact, UGT believes that our business policies incorporate the ten principles. Our Company measures success by the value we deliver to our customers, partners, employees, and communities. We are working towards sustainability goals. In our annual report, we have summarized the progress we have made against health and safety, human rights, charity and sponsorship and we will continue to follow them up in future reports. About UGT UGT was established in Today the company is one of the leading system integrator and provider of solutions in the field of information and communication technology. UGT primarily concentrates on providing services to corporate clients and the government sector. The core business of UGT is the implementation, deployment, and support of solutions that are based on information and communication technology products and services. UGT is also known for the provision of high quality computer equipment and accessories. The characteristics UGT is most proud of, and committed to, are: professionalism, customer care, provision of high quality products and services to every customer. Our success has been achieved through the knowledge and experience of professional managers and technical staff- the majority of who constantly undergo qualification trainings in the headquarters of our partners. These partners are the leaders in the field of information and communication technology throughout the world.

3 Mission Statement Our mission is to assist our customers in reaching their goals by providing them with information and telecommunications solutions based on modern technologies, products and services. UGT is constantly introducing itself to the latest technology resources and offers its clients solutions based on up-to-date achievements, which effectively aid them in successfully reaching their goals. Health and safety UGT works to ensure a safe working environment in our offices. To promote a healthy and safe working environment, we manage a wide range of risks, including activities of third parties on our premises, fire, disease, and workplace accidents. Specific actions are in place for each of these risks. Line managers throughout the company are responsible for implementing our health and safety policies and procedures to minimize the risks and to ensure all legal requirements are satisfied. Human rights UGT supports equal employment opportunity for all applicants and employees, regardless of race, color, religion, gender, national origin, ancestry, age, marital status, sexual orientation and gender identity. Learning and development We rely on our employees to think creatively and constantly seek out new ways to meet our customers' needs. By giving our employees the opportunity to develop new skills and refine existing talents to do their jobs better. In fact, we are investing in the long-term success of our company.

4 UGT's employee development program offers a curriculum that is applied across all departments. The program enhances employees' business, technical, and interpersonal skills and enables them to excel in their chosen career paths. We combine instructor-led and e-learning classes to ensure that our people can reach their maximum professional potential. We also offer tuition reimbursement for qualifying employees. Our professional managers and engineers constantly undergo qualification improvement courses in the headquarters of our partners, enabling them to be constantly aware of all current technology novelties. These partners are the leaders in the field of information and communication technology throughout the world. Employee satisfaction and engagement Employee satisfaction is a vital measure of the effectiveness of our people strategies and of the impact we know it has on customer satisfaction. Even more useful, however, is to measure 'employee engagement', which is made up of three components: job satisfaction, intention to stay at UGT, and a willingness to recommend UGT as a great place to work. We find that colleagues who exhibit high levels of engagement also provide better service to customers and are more likely to stay with us. From external benchmarks, we believe that the average level of engagement is already relatively strong. However, this is an important measure for our business and we want to do better.

5 Charity and Sponsorship 1. Within the framework of its charity program UGT several times supported IDPs sheltered in the buildings of public Kindergarten N 11 located in Digomi District, Musical Boarding School in Lodkini district, Public School in Vashlijvari, also Schools N 62 and 48. UGT provided food for children, products for personal hygiene, mattresses, bedclothes and other personal goods. Our employees have also been actively involved in various types of charity events targeted to support IDPs. During the Week of Solidarity in Georgia our company also continued to provide assistance to IDPs. Food, products for personal hygiene, mattresses, bed cloths and other personal products were delivered to IDPs sheltered in Public Kindergarten N We participated in the charity tennis tournament that took place on October 4-5 at the City Sport. The charity tournament was organized under the patronage of Mrs. Sandra Ruloffs - the First Lady of Georgia. The First Lady herself participated in the competition. The first prize was won by UGT. The funds received in the course of the Tournament were used to buy sports uniforms and tennis rackets for IDP children.

6 3. On the 1st of June UGT sponsored the event We Can See the Sun , dedicated to the international day of Protecting Children. This year the celebration had 4 main objectives: 1. Social integration of orphans and handicapped children; 2. Take care of Mziuri to turn Nodar Dumbadze's dream into reality ( Children's City ); 3. Recollect Nodar Dumbadze's literary works; 4. Convince everyone that Miracles Do Happen. The event was organized by the initiating group We Can See the Sun. Various entertaining programs for children took place. The celebration was enjoyable for everyone, regardless gender, origin or physical and mental abilities. UGT invited children from the Children's Shelter in Tskneti. Within the Project children received various presents prepared specially for them in advance. UGT provided food and drinks for the children. The event included exhibition of children's paintings under the common name We Can See the Sun Miracles Do Happen. All children had an opportunity to bring their paintings that would suit the above title. This was the second time when UGT sponsored the Sunny Celebration. In 2006 UGT sponsored the same event organized under the slogan: Please Smile.

7 4. UGT handed over computer hardware to the Ministry of Economy of Abkhazia Autonomous Republic. During the last years the Government of the Autonomous Republic, namely the Ministry of Economy, has been implementing huge labor-consuming work in order to rehabilitate Upper Abkhazia. They participate in many projects targeted to improve the social and economic condition of the IDPs and to provide employment and support. Ministry used the hardware to improve the quality of the data base of the internally displaced population (IDPs). 5. We sponsored the event dedicated to celebration of the US Independence Day. In order to celebrate the US Independence Day the American Chamber of Commerce and the US Embassy in Tbilisi organized a picnic on the Ku (Turtle) Lake. The celebration started with jazz and rock-and-roll music performed by Tony O'Mol's Band. This was followed by the performance of the only rock-and-roll band in Georgia Heavy Cross Band. The evening finished with fascinating fireworks. 6. UGT sponsored Tennis tournament which take place on May on tennis courts of Laila Meskhi's Tennis Academy. Participants of Tournament were girls and boys of four age groups: 10,12,14,16. This was the first category tournament, being at the same time the first selection tour for the European Championship. Up to 200 young sportsmen from different regions of Georgia participated in the competition.

8 7. UGT was a Platinum Sponsor of the International Conference Creation of the Informed Society for Promotion of Socio-Economic Development of the Country. The goal of the Conference was to inform the public about the role and importance of IT technologies in the socioeconomic development of Georgia; to establish contacts with interested persons and organizations; to better inform high level government officials, private sector representatives and wide public about the importance and value of IT technologies. Representatives of government institutions, private companies, NGOs and donor organizations, also state policy makers and international IT experts from up to ten countries participated in the work of the Conference. The Conference was dedicated to such topics as: development of IT technologies in Georgia; influence of the IT technologies on social and economic development of the country; technological innovations of the National Agency of Public Registry; development of electronic services at the Ministry of Finance of Georgia; measures undertaken for electronic management of institutions of the Georgian government and education sectors; creation of an effective IT infrastructure; security of operations of the business and government sectors; IT management; consultancy services etc.

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